Microfinancial/Centerpoint

We approved deal and forwarded documents to customer, however, in the process I pointed out that he was going from a telephone answering machine to and elaborate phone system with 22 handsets, sort of like going from a\

skateboard to a new Rolls Royce. why? I also informed him that we were

sending someone out to inspect the equipment and check

S/N's, etc. That's when he disappeared. This customer was even more glowing

than Total Control Trucking, Inc.

I wish to thank you and your newsletter for the responses we received since

your posting on 10/21/02. the responses are:

Greg LeFebre of Rochester Leasing-stated he passed on this deal as he

suspected fraud. He wished he had immediately posted with

you, possibly have saved us from our own carelessness.

Barry Reitman of Keystone Equipment Leasing, Inc. responded. He also had

passed on the Total Control deal, suspected attempted

fraud. He is most interested in the final outcome of this.

Bob Bell of Independent Leasing Associates responded offering help,

asserting fraud is "our worst nightmare".

Eric Gross of Portfolio Financial Servicing Co. responded with an excellent

idea. He stated we should pursue the Insurance agency

which agent issued the fake Insurance Certificate for Errors and Omissions

coverage.

Bob Arnowitt of First Capital Equipment Leasing Corp. responded stated he

was a victim of a similar scam, and the Law Authorities

in that area are worthless.

Charlie Lester of LPI Financial responded, stating that when he was at First

Sierra they were victimized for more than $600M in 1998

and 1999, all frauds in the Atlanta area.

We may never recover a cent, but all concerned can be assured that we are

not just going to chalk this up to a sad and careless

experience and forget it. We are and will continue to vigorously pursue,

utilizing all options. Anyone with advice or suggestions, please

email them to me at larrys@dlease.com

It’s Official!!!---Mogilski, Sillas, Taylor—New CLP’s

The Certified Leasing Professional Foundation Board of Directors would like to congratulate each of the following new CLP's for their hard work in achieving this designation and their to desire, as new CLP's, to help raise the professional standards of the leasing profession:

Edward T. Mogilski, CLP, a Manager with California First Leasing Co. located in Santa Ana, California

Ray Sillas, CLP, a Vice President with C Leasing Company located in El Paso, Texas

Jeffrey Taylor, CLP, Founder of ExecutiveCaliber - Global Lease Training, located in Bountiful, Utah.

We would like to welcome each of them as our newest Certified Lease Professionals.

For further information about the CLP Program please call Cindy Spurdle, Executive Director, at 610/687-0213 or visit our web site -- www.clpfoundation.org .

Thank you,

Cindy Spurdle

Executive Director

CLP Foundation

Cindy@clpfoundation.org

PH: 610/687-0213

FAX:610/687-4111

----------------------------------------------------------------------------------------------

Former GE Capital Vice President Pleads Guilty to Insider Trading

By Colleen DeBaise

Dow Jones Newswires

NEW YORK -- A former General Electric Capital Corp. executive pleaded guilty Tuesday to tipping off a kung fu instructor ahead of GE Capital's purchase last year of Heller Financial Inc.

Anthony Chrysikos, 39 years old, of Edgewater, N.J., a former vice president of finance in the aircraft services division of GE Capital, pleaded guilty in Manhattan federal court to conspiracy and securities fraud.

Mr. Chrysikos, who was a member of the GE Capital team that worked on the Heller Financial deal, was charged in July with passing inside information about the planned purchase to Michael Martello, 35, an American martial-arts expert and Web page designer living in Taiwan at the time.

GE Capital, a unit of General Electric Co. (NYSE:GE - News) , announced a $5.3 billion cash tender offer for Heller Financial's stock on July 30, 2001.

That same day, Mr. Martello made about $157,300 in illegal trading profits by selling call options of Heller Financial that he had purchased July 27 based on Mr. Chrysikos' information, prosecutors said. The two men shared the profits, according to charges.

Mr. Chrysikos faces up to 10 years in prison on the most serious charge of securities fraud, although he will likely receive less than that under federal sentencing guidelines. U.S. District Judge Jed S. Rakoff scheduled sentencing for April 3. An attorney for Mr. Chrysikos couldn't immediately be located.

The criminal charges are still pending against Mr. Martello.

-Colleen DeBaise, Dow Jones Newswires, 212-227-2017, colleen.debaise@ dowjones.com

_______________________________________________________________

Attack On Internet Called Largest Ever

By David McGuire and Brian Krebs

washingtonpost.com Staff Writers

The heart of the Internet sustained its largest and most sophisticated attack ever, starting late Monday, according to officials at key online backbone organizations.

Around 5:00 p.m. EDT on Monday, a "distributed denial of service" (DDOS) attack struck the 13 "root servers" that provide the primary roadmap for almost all Internet communications. Despite the scale of the attack, which lasted about an hour, Internet users worldwide were largely unaffected, experts said.

FBI officials would not speculate on who might have planned or carried out the attack.

David Wray, a spokesman for the FBI's National Infrastructure Protection Center (NIPC), said the bureau is "aware of the reports and looking into it."

DDOS attacks overwhelm networks with an onslaught of data until they cannot be used. According to security experts, the incident probably was the result of multiple attacks, in which attackers concentrate the power of many computers against a single network to prevent it from operating.

"This was the largest and most complex DDOS attack ever against the root server system," said a source at one of the organizations responsible for operating the root servers.

Ordinary Internet users experienced no slowdowns or outages because of safeguards built into the Internet's architecture. A longer, more extensive attack could have seriously damaged worldwide electronic communications, the source said.

Internet Software Consortium Inc. Chairman Paul Vixie said that if more servers went down, and if the hackers sustained their hour- long strike a bit longer, Internet users around the world would have begun to see delays and failed connections.

Chris Morrow, network security engineer for UUNET, said "This is probably the most concerted attack against the Internet infrastructure that we've seen." UUNET is the service provider for two of the world's 13 root servers. A unit of WorldCom Inc., it also handles approximately half of the world's Internet traffic.

DDOS attacks are some of the most common and easiest to perpetrate, but the size and scope of Monday's strike set it apart.

Vixie said only four or five of the 13 servers were able to withstand the attack and remain available to legitimate Internet traffic throughout the strike. "It was an attack against all 13 servers, which is a little more rare than an attack against any one of us," he said.

The server Vixie operates was available throughout the attack, he said.

Internet addressing giant VeriSign Inc., which operates the most important server from an undisclosed Northern Virginia location, reported no outages.

"VeriSign expects that these sort of attacks will happen and VeriSign was prepared," company spokesman Brian O'Shaughnessy said.

Vixie said he was unwilling to compare the attack to others he has witnessed in more than two decades of involvement with Internet architecture, but said it was "the largest in recent memory."

The root servers, about 10 of which are located in the United States, serve as a sort of master directory for the Internet.

The Domain Name System (DNS), which converts complex Internet protocol addressing codes into the words and names that form e-mail and Web addresses, relies on the servers to tell computers around the world how to reach key Internet domains.

At the top of the root server hierarchy is the "A" root server, which every 12 hours generates a critical file that tells the other 12 servers what Internet domains exist and where they can be found.

VeriSign manages its servers under contracts with the Commerce Department and the Internet Corporation for Assigned Numbers (ICANN), which manages the DNS.

One rung below the root servers in the Internet hierarchy are the servers that house Internet domains such as dot-com, dot-biz and dot-info.

The DNS is built so that eight or more of the world's 13 root servers must fail before ordinary Internet users start to see slowdowns.

"There are various kinds of attacks all the time on all sorts of infrastructure, and the basic design of the Internet is such that it is designed to withstand those attacks," said ICANN Vice President Louis Touton. "We're not aware of any users that were in any way affected.

"Obviously the prevalence of attacks does make it important to have increased focus on the need for security and stability of the Internet," he added.

Most often, the computers used in the DDOS assaults have been commandeered by hackers either manually or remotely with the help of automated software tools that scan millions of computers for known security holes. These computers often belong to unsuspecting home users.

Little can be done to insulate targets from such attacks, and some of the world's most powerful companies have been targeted in the past. In February 2000, Amazon.com, eBay, Yahoo, and a host of other big-name e-commerce sites came to a grinding halt for several hours due to DDOS attacks.

"Only the richest can defend themselves against this type of attack, and most of them can't withstand a concerted attack," said Alan Paller, research director at the SANS Institute, a nonprofit security research and training group that often works with federal investigators to track computer virus writers. Paller also was the lead expert witness at the trial of "Mafiaboy," the Canadian teenager who was ultimately convicted of the February 2000 attacks.

"The only way to stop such attacks is to fix the vulnerabilities on the machines that ultimately get taken over and used to launch them," Paller said. "There's no defense once the machines are under the attacker's control."

Vixie said he kept the server at Internet Software Consortium operating by "pushing" the flood of data far enough away from his servers that legitimate traffic could flow around the obstruction. Such clogs still affect some Internet users by gumming up Internet communications somewhere else in the network.

UUNET's Morrow said it is too early to tell what the attack bodes for the Internet in coming months. "This could be someone just messing around, but it could also be something much more serious. It's too soon to say," Morrow said.

washingtonpost.com Staff Writer Robert MacMillan contributed to this article.

Co-op Entrepreneur Makes

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Leading economic index off in September

"The economy shrank for the first three quarters of last year, meeting the measure of a recession, which is at least two straight quarters of decline."

By Associated Press

EW YORK - September's faltering stock market and increasing unemployment claims dragged down a widely watched gauge of US economic prospects, a research group said yesterday.

It was the fourth consecutive monthly decline, but economists downplayed the possibility that it portended a second recession in as many years.

The Conference Board reported that its index of leading economic indicators fell 0.2 percent, matching Wall Street expectations.

The leading index, which attempts to predict the strength of the economy about six months ahead, stood at 111.6 in September. It stood at 100 in 1996, its base year.

Stuart G. Hoffman, chief economist at PNC Financial Services Group in Pittsburgh, said the decline would ''make some people nervous,'' but there was no real reason to conclude that the economy would go into a ''double-dip'' recession.

The index was affected mainly by the depressed stock market, which is not necessarily an accurate predictor of the economy, Hoffman said.

The economy shrank for the first three quarters of last year, meeting the measure of a recession, which is at least two straight quarters of decline.

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Irwin Financial Corporation Announces Third Quarter Earnings

*Earnings Decline Due to Transition Off Gain-on-Sale

*Securitization Accounting Strong Mortgage Loan

*Originations and Rising Commercial Banking Net Income

*Recession Reflected in Increased Credit Costs

*2002 and 2003 Earnings Forecasts Reaffirmed

COLUMBUS, Indiana -- -- Irwin Financial Corporation (NYSE: IFC), an interrelated group of specialized financial services companies focusing on mortgage banking, small business lending, and home equity lending, today announced net income for the third quarter of 2002 of $9.0 million or $0.32 per diluted share. This compares with net income of $11.5 million or $0.50 per diluted share during the same period in 2001, a decrease in earnings per share of 36 percent. Net income has totaled $26.9 million or $0.99 per share year-to-date, compared to $33.4 million or $1.47 per share for the first nine months of 2001.

Sites of Reference:

http://www.irwinfinancial.com/

CONTACT:

Suzie Singer

Phone Number: (812) 376-1917

_______________________________________________________________________

A Business Out of Discounts—Co-Ops, Leasing, too

By JEFF BAILEY

Staff Reporter of THE WALL STREET JOURNAL

Co-op Entrepreneur MakesKit,

“I thought you would enjoy reading this. David Leppert is my partner in MainStreet Cooperative Group and is intimately involved with OneWorld Leasing.

“All the best!”

Rich

Richard Selby

OneWorld Leasing, Inc.

1553 W. Todd Dr., Suite 110

Tempe, Arizona 85283

tel. (480) 203 8350

E-mail: rselby@oneworldleasing.com

URL: www.oneworldleasing.com

Sometimes the little guy doesn't even know he's getting a bad deal.

But David E. Leppert knew. As a salesman for big manufacturers of drywall, the gypsum sheets used in housing and commercial construction, Mr. Leppert charged little drywall distributors as much as 7% more than he charged his biggest customer, an operator of about 100 drywall yards.

Volume buyers, of course, usually get a discount. And Mr. Leppert didn't much think about the price disparity until 1996, when he decided he'd like to become a drywall distributor himself. Talking to some of his smaller customers, he discovered that their profit margins were razor thin, and that many of them didn't know that bigger distributors were buying at such drastically lower prices.

"I rethought my plan," Mr. Leppert says. Indeed, rather than become one of those disadvantaged smaller distributors, Mr. Leppert decided to help them eliminate the 7% disparity. He formed Amarok Inc., a cooperative of smaller drywall distributors. And today, the co-op's 151 members, with combined sales of about $1.5 billion, "get industry-best pricing," Mr. Leppert says.

Big Rebates

They got it by banding together and using their combined size to wring concessions from manufacturers. D. Jay DeFoor, chief executive of DeFoor Drywall & Acoustical Supply Inc., a Macon, Ga., Amarok member, says he received $250,000 in rebates from drywall and other manufacturers for the year ended June 30, because of improved pricing the co-op has secured. "There's no way I could have negotiated that on my own," Mr. DeFoor says. In a thin-margin business, "that's a huge part of our bottom line."

Mr. DeFoor, whose firm has annual sales of about $20 million, figures he has saved even more by swapping management tips with his fellow Amarok members. He would never share a valuable secret with a local competitor, Mr. DeFoor says, but co-op members across the country, who don't compete with one another, freely help each other.

After encouragement from co-op colleagues, Mr. DeFoor says he put satellite-tracking systems in his 24 delivery trucks, raising driver productivity by closely monitoring their work habits. "It's stopping the guys from taking two lunch breaks," he says. And he also overcame fears about opening a second location after consulting with Amarok contacts, and that helped him boost sales. "It would have been a much more difficult move to make had we not been able to draw on the experience of others who had been very successful with multiple stores," he says.

Purchasing co-ops have spread rapidly, doubling to represent 50,000 U.S. businesses over the past decade, according to the National Cooperative Business Association, a Washington trade group. "You can form [a co-op] in about any kind of business you want," says Bob Cropp, a co-op specialist at the University of Wisconsin Center for Cooperatives in Madison.

Typically, co-ops are started by a group of smaller players in an industry, hoping to reap purchasing or marketing economies of scale. But many entrepreneurs are too busy running their own firms to put together a co-op. And many -- like some of Mr. Leppert's former drywall customers -- aren't even aware of the price disadvantage they operate under, so forming a co-op wouldn't occur to them.

So, with the drywall playing field leveled, did Mr. Leppert decide to finally start up his own distributorship? No. Instead, he has in recent years become a co-op entrepreneur, identifying other industries in which smaller players could benefit by banding together. He helped start Nemeon Inc., a co-op of smaller roofing-supply distributors; Sphere1 Inc., a co-op for tool and fastener dealers; and YaYa Bike Inc., a co-op for independent bike shops. He is currently researching possible co-ops in the office-equipment leasing field and among gravel-pit owners.

Initiation fees range from $800 for the bicycle-shop co-op to $6,500 to join the drywall co-op. Members also buy stock over time by leaving a portion of their rebates, or dividends, in the co-op: $1,500 in stock for the bike shop owners, $12,500 for drywall distributors.

Mr. Leppert, 41 years old, makes money by charging the co-ops fees for management services provided by Cooperative Solutions LLC, Tempe, Ariz., where he is chief executive officer.

Punitive Power

Manufacturers, of course, don't just roll over and pass along lower prices. Co-ops have to reach a critical mass in size and then be willing to withhold business to show some companies the punitive power of shared buying. "We had to demonstrate there would be ramifications," Mr. Leppert says.

The co-ops he has founded don't actually do the buying, take possession of the materials, or operate warehouses, as do many of the largest U.S. farm, grocery and hardware co-ops. Rather, these newer co-ops negotiate a price and their members then buy directly from manufacturers. That holds down co-op costs and allows faster growth.

Write to Jeff Bailey at jeff.bailey@wsj.com

Larry L. Summers

LarryS@dlease.com

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New President at CapitalStream as Leasing News Predicted

As Leasing News reported ( and all the others printed the press release)

26 employees let go, major changes in management. Here is the

first spin to the story. They left out they were after $12 million.

Many unhappy people terminated at WiredCapital and Capitalstream

(their e-mail addresses at leasingnews now come back. We hope to

have an interview with the new CEO as this company has changed

direction many times, key management, and appears headed into

a very competitive marketplace than specializing in the leasing

industry. editor)

############### ######################################

CapitalStream Appoints Kevin Riegelsberger as CEO

CapitalStream Announces the Strategic Acquisition of

WiredCapital and Closes $10 million in Equity Financing

http://www.capitalstream.com/news/press/101002.asp

FULL TEXT OF PRESS RELEASE ON APPOINTMENT OF CEO

CapitalStream Appoints Kevin Riegelsberger as CEO

Seattle, WA - CapitalStream

(www.CapitalStream.com), a Seattle-based provider of financial

front office automation solutions for business and commercial

credit, today announced the appointment of Kevin Riegelsberger

to the position of President and Chief Executive Officer.

Former President and CEO of WiredCapital, Riegelsberger joins

CapitalStream as a result of the recent acquisition of

WiredCapital.

"We are fortunate to find a CEO who combines the financial,

software and management expertise to further establish

CapitalStream as a leader in deploying innovative technology

solutions to the financial services industry" states Tony

Audino, Chairman of the Board at CapitalStream and Managing

Director of Voyager Capital.

"Kevin has previously built a successful financial software operation

from a startup to a profitable public company, and he has acquired the versatile

leadership skills that can only come through the experience of

leading an organization through each phase of growth."

Before joining WiredCapital as President & CEO, Kevin founded

one of the industry leading financial software application

providers - Platinum Software Corporation (now called Epicor).

Platinum grew from a 7-person startup to a publicly traded

company with over $260m in revenue. During his 15 years at

Platinum, Kevin oversaw operations, sales and technology

development to create the 8th largest enterprise software

company in the world. He also foresaw the international

opportunity and built a worldwide distribution channel

generating over $100m in annual revenue from operations in all

major international markets.

While at WiredCapital, Kevin assembled an experienced

management team and successfully released WiredFinance, an

installable web-based commercial finance automation platform

that has been sold and implemented at leading financial

institutions. Kevin now leads a joint management team with

key executives from both WiredCapital and CapitalStream

combining decades of experience in finance, credit, banking,

leasing and software development.

"The top challenge facing the financial services industry is

to improve front office processes and systems to provide the

integrated customer information and product offerings that

relationship managers need to develop lasting customer

relationships leading to increased credit and fee revenue,"

said Riegelsberger. "Our market research indicates that the

industry has tried to solve this problem through internal

systems development because a truly viable solution provider

had not yet emerged. With the recent funding and acquisition,

CapitalStream is now perfectly positioned as the leader in

financial front office automation with a proven track record

of success at some of the most respected brands in banking and

finance."

About CapitalStream

CapitalStream, based in Seattle, Washington, develops

financial front office automation solutions that enable banks

and finance companies to transform paper-based, stand-alone

operations into integrated, streamlined finance supply chains.

CapitalStream's software solutions enable seamless and

paperless collaboration between customers, partners, and

internal operations to rapidly originate loans, leases, lines

and cards. CapitalStream integrates disparate systems,

processes and organizations to provide a single platform with

a complete view of the customer relationship enabling

financial institutions to better manage credit risk, reduce

costs, and attract new business. CapitalStream, an

established industry leader, has helped hundreds of financial

organizations increase their competitiveness, responsiveness

and profitability. For more information visit

www.capitalstream.com.

( note the emphasis on financial organizations, rather than

the leasing industry where they began with System1 for

leasing brokers and small to medium sized

leasing companies that Jim Buckles now manages. Editor )

####### ###############################################

Santa Barbara Bank and Trust Leasing Parent is “Hot!”

PACIFIC CAPITAL BANCORP REPORTS STRONG INCREASE

IN THIRD QUARTER EARNINGS Highlights

· $0.50 earnings per share compared to $0.32 in same quarter of prior year

· Excluding one-time events, earnings per share of $0.45, an increase of 41%

· Year-to-date earnings per share increase by 33% over 2001

· Full year 2002 guidance increased to $2.02 to $2.04

Santa Barbara, California / -- Pacific Capital Bancorp (Nasdaq:SABB), a community bank holding company with $4.1 billion in assets, announced financial results for the third quarter ended September 30, 2002.

Net income increased 56% to $17.6 million, or $0.50 per diluted share, from $11.3 million, or $0.32 per diluted share, in the third quarter of 2001. For the first nine months of 2002, Pacific Capital Bancorp's net income increased 32% to $60.4 million, or $1.72 per diluted share, from $45.8 million, or $1.29 per diluted share.

Pacific Capital Bancorp's return on average equity (ROE) and return on average assets (ROA) for the third quarter of 2002 were 19.80% and 1.73%, respectively, compared to 13.66% and 1.18%, respectively, for the third quarter of 2001.

"Our third quarter financial results benefited from positive developments that included three large problem credits representing approximately $30 million in outstandings," said William S. Thomas, Jr., President and Chief Executive Officer of Pacific Capital Bancorp. "During the third quarter, two large commercial loans moved back into acceptable credit classifications and one large commercial real estate loan classified as substandard was paid off.

"Aside from these credits, the remainder of our portfolio also performed better than expected. The combination of the improvement in the three large credits and the solid performance of the rest of the portfolio freed up sufficient allowance for credit losses to more than offset the net provision required for the growth in our loan portfolio and to address expected changing trends in credit quality. As a result, we recorded a negative provision for credit losses in the third quarter.

"In the fourth quarter, we expect to return to a more normal level of provisioning," said Thomas.

As part of the California state budget package passed during the third quarter of 2002, the legislature included a change in the tax treatment of loan losses. This resulted in Pacific Capital Bancorp receiving a one-time tax benefit of approximately $689,000, or $0.02 per share.

Excluding the positive impact of the improvement in the three large credits and the one-time tax benefit, Pacific Capital Bancorp's net income in the third quarter of 2002 would have been $15.6 million, or $0.45 per diluted share, representing a 41% increase in earnings per share compared to third quarter 2001.

"We are pleased to have achieved strong earnings growth during the third quarter, even without these one-time items," said Thomas. "Our strong third quarter performance was also driven by an increasing net interest margin and continued success in our efforts to maintain expenses at 2001 levels. Year-over-year, we reduced total operating expenses by 4.6% in the third quarter, while at the same time increasing our assets by 9%."

Financial Highlights

During the third quarter, total interest income was $62.4 million, compared with $66.7 million in the same period last year. This decrease occurred as the lower rates earned on loans offset the positive impact of higher loan balances.

Total interest expense for the third quarter of 2002 was $15.1 million, compared with $23.1 million for the third quarter of 2001. Although deposit volume increased year-over-year, total interest expense decreased due to the lower interest rate environment.

Net interest margin for the third quarter of 2002 was 5.23% (exclusive of RALs). This represents a six basis point improvement over the net interest margin of 5.17% (exclusive of RALs) in the second quarter of 2002 as the Company benefited from stable interest rates and the continued repricing of deposits. This also compares with a net interest margin of 5.11% (exclusive of RALs) in the third quarter of 2001.

Total loans were $2.91 billion at September 30, 2002, compared to $2.88 billion at June 30, 2002. Total loans increased 7.1% from $2.72 billion at September 30, 2001.

Total deposits were $3.38 billion at September 30, 2002, compared to $3.23 billion at June 30, 2002 and $3.13 billion at September 30, 2001.

Noninterest revenue was $11.4 million, compared with $13.0 million in the third quarter of 2001. Service charges on deposit accounts increased during the third quarter of 2002 to $3.6 million, up 10.4% over the third quarter of last year. Fees generated by the Trust & Investment Services division were $3.2 million, essentially unchanged from the $3.2 million in the third quarter of 2001.

Income from other service charges, commissions and fees for the quarter ended September 30, 2002, decreased to $2.8 million from $4.3 million in the same quarter of 2001. This decrease is primarily attributable to the absence of revenues from the Company's former merchant bankcard portfolios, which were sold to First Data Corporation in the second half of 2001.

Exclusive of the revenue-sharing received from the sold portfolios, income from other service charges, commissions and fees was $2.6 million in the third quarter of 2002, compared with $2.2 million in the same period of 2001, excluding fees from the merchant bankcard portfolios.

In the third quarter of 2001, other income included a $1.7 million gain resulting from the sale of the Company's merchant card portfolio, offset by a $718,000 loss taken as the Company terminated some interest rate swaps. Exclusive of these unusual items, other income for the third quarter of 2001 would have been $975,000 compared to $1.2 million in the third quarter of 2002.

Excluding the impact of the RAL and RT programs, Pacific Capital Bancorp's operating efficiency ratio for the third quarter of 2002 was 55.25% compared with 53.92% in the prior quarter and 59.89% in the same period last year.

Asset Quality and Capital Ratios

During the third quarter, the Company recorded a negative provision for non-RAL credit losses of approximately $846,000.

For the quarter ended September 30, 2002, the allowance for credit losses was $55.3 million, or 1.90% of total loans, compared to $59.1 million, or 2.05% of total loans, at June 30, 2002. This compares with the industry average of 1.81% of total loans for the Company's peer group, based on data provided as of June 30, 2002.

Total noncurrent loans, the sum of nonaccrual and 90 days or more delinquent but still accruing interest, increased to $49.8 million at September 30, 2002, representing 1.71% of total loans, from $31.5 million at June 30, 2002. This compares with the industry average of 1.04% of total loans for the Company's peer group, based on data provided as of June 30, 2002.

Approximately $16 million of the $18.3 million increase in noncurrent loans is attributable to one commercial credit in the wine industry. The loan is currently performing, however there is sufficient uncertainty about the customer's ability to repay the entire principal according to the terms of the loan to warrant moving the credit into a nonaccrual category. Pacific Capital Bancorp first identified the inherent loss related to this credit in the first quarter of 2002, and provided an allowance for credit losses in both the first and second quarters of 2002. The Company believed that no further provision related to this credit was needed in the third quarter.

Total nonperforming assets at the end of the third quarter of 2002 represented 1.22% of total assets, an increase from 0.78% of total assets at the end of the prior quarter. This compares with the Company's peer group average of 0.73% of total assets, based on data provided as of June 30, 2002.

Excluding the $16 million commercial credit referred to above, noncurrent loans would have represented 1.16% of total loans at September 30, 2002, and nonperforming assets would have represented 0.83% of total assets.

Net charge-offs (exclusive of RALs) for the three months ended September 30, 2002, were $2.9 million, compared with $1.6 million for the three months ended June 30, 2002.

Annualized net charge-offs to total average loans (both exclusive of RALs) were 0.40% for the three months ended September 30, 2002, compared with 0.23% for the three months ended June 30, 2002. This compares with the Company's peer group average of 0.82%, based on data provided as of June 30, 2002.

"Our commercial real estate portfolio also continues to perform well," said Thomas. "Historically, our strategy has been to lend to customers we know within our Central Coast markets. 84% of our commercial real estate credits relate to properties that are within our market footprint between Morgan Hill in the north and Thousand Oaks in the south. The remaining 16% represent loans to existing, long-term customers who have specific properties located outside our footprint, with only 6% in either the Bay Area or Los Angeles. Noncurrent commercial real estate loans represent only 0.29% of our total commercial real estate loans, a slight increase over 0.24% in the prior quarter and 0.27% in the same period last year."

The Company's capital ratios continue to be above the well-capitalized guidelines established by bank regulatory agencies.

Share Purchase Program Update

On June 6, 2002, Pacific Capital Bancorp announced that its board of directors had authorized the repurchase of up to $20 million of its common stock. Through September 30, 2002, the Company had purchased 205,167 shares of its common stock at an average per share price of $24.63, for a total price of $5.1 million.

2003 RAL/RT Programs

The Company expects its overall transaction volume during the 2003 RAL/RT season to increase by approximately 18%. There remains uncertainty about the product mix between RALs and RTs, and the Company is expecting competitive pricing pressure in the 2003 season. Therefore, increased volume does not necessarily equate to a corresponding percentage increase in profitability.

"While some segments of the RAL/RT market are maturing, the overall outlook looks strong as these products continue to gain in popularity," said Thomas. "With a new multi-year agreement in place with Jackson-Hewitt and our continuing relationship with Intuit, we believe that our pipeline of customers should see steady growth in 2003."

Outlook

Based on the strong third quarter financial results, Pacific Capital Bancorp now believes its full year 2002 earnings per share will range between $2.02 and $2.04.

"Our new estimate is based on the assumption of continuing stable economic conditions in our markets, a relatively flat interest rate environment, and a more normalized provision of $5-6 million following the unique situation that occurred in the third quarter," said Thomas. "We believe that quality loan growth and success in expense management will enable the Company to continue posting solid financial results in the fourth quarter."

Pacific Capital Bancorp is the parent company of Pacific Capital Bank, N.A., a nationally chartered bank that operates under the local brand names of Santa Barbara Bank & Trust, First National Bank of Central California, South Valley National Bank and San Benito Bank. Pacific Capital Bank, N.A. is a 41-branch community bank network serving customers in six Central Coast counties, from Morgan Hill in the north to Westlake Village/Thousand Oaks in the south. CONTACT:

Pacific Capital Bancorp

Deborah Lewis, 805/884-6680

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OneSource Financial Announces Fiscal Year End Results

OneSource Financial Corp. (OneSource), an independent equipment lessor, announced its audited financial results for fiscal year ended June 30, 2002. OneSource continued its impressive run recording positive earnings for the year. OneSource has not experienced a loss for a fiscal reporting period since its inception.

"OneSource has had seven straight years of profitability and performed well in a challenging environment. The Company is now perfectly positioned for growth and plans to take advantage of market opportunities, stated Lou Manitzas, President and Chief Executive Officer of OneSource.

During its fiscal year 2002, OneSource completed a $6.8 million financing for technical manufacturing equipment with another Austin-based company in the semiconductor industry.

OneSource Financial Corp. is a third party, independent equipment lessor serving the middle market. Founded in 1995, OneSource has funded in excess of $100 million of equipment in an array of leasing products to commercial accounts. The company is headquartered in Austin, Texas and also has an office in Dallas.

See www.osfcorp.com for more information.

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Microfinancial/Centerpoint? Can You Tell The Difference?

Leasecomm Telephone Conference with Investors Postponed until Thursday,

Ocotber 30:

“The change from October 23, 2002 was necessary due to scheduling conflicts.

“MicroFinancial will hold a webcast of its teleconference to discuss the financial results with the financial community October 30, 2002, at 4:30 p.m. Eastern Time. The webcast can be located at www.microfinancial.com under the investor relations section of the website. A telephone replay will also be available for six weeks starting one hour after the conclusion of the teleconference. Interested persons may listen to the playback of the teleconference by calling the following toll-free number: (877) 289-8525 toll free or 416-640-1917 for international callers and entering the passcode number 215881.”

“A periodic issuer of micro-ticket equipment lease ABS, Microfinancial

announced last week that it plans to expand its presence as a server and

reduce or end its focus on origination. Ratings analysts say that

Microfinancial's ABS is still strongly backed by various point-of-service

equipment. (ATM machines, etc..Editor)

“ The announcement is reminiscent of a similar move by

Centerpoint Financial Services earlier this year to stop its origination

effort and transfer servicing to U.S. Bancorp Portfolio Services, U.S.

Bancorp's servicing unit.

“ Several of Centerpoint's late 1990s deals have

seen action by Fitch Ratings, and two Centerpoint transactions from 2000

and 2001 are currently being watched for a downgrade by Moody's Investors

Service.”

http://www.absnet.net

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Will You Be Ready When the Leasing Market Takes Off?

full presentation here:

http://www.forequipmentleasing.com/YesYouCan/html/marina_del_rey.html

Six tips given by America Online's safety ''buddy'':

By Associated Press27

Six tips given by America Online's safety ''buddy'':

1. Never give out your name, home address, age, phone number or school name or any personal information to strangers online.

2. Don't give out your password to anyone, either online or offline.

3. Never agree to meet an online friend in person without one of your parents.

4. Don't email pictures of yourself to strangers online.

5. Never accept things from strangers online, such as e-mails, files, pictures, or Web links.

6. If someone says or does something online that makes you feel unsafe or uncomfortable, tell an adult right away.

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MB Financial, Inc. Reports 58% Increase in Third Quarter Net Income

CHICAGO--(BUSINESS WIRE)-- MB Financial, Inc. (NASDAQ:MBFI) (the "Company"), the holding company for MB Financial Bank, N.A., Union Bank, N.A. and Abrams Centre National Bank (collectively, the "Banks") announced today third quarter 2002 net income of $12.2 million compared to $7.7 million for the third quarter of 2001, an increase of 58.0%. Fully diluted earnings per share for the third quarter of 2002 increased 58.1% to $0.68 compared to $0.43 for the third quarter of 2001. Of this increase, approximately $683 thousand or $0.04 basic and fully diluted earnings per share, resulted from the adoption of Statement of Financial Accounting Standard No. 142 on January 1, 2002, which eliminated the requirement to amortize goodwill.

Mitchell Feiger, President and Chief Executive Officer of the Company, said "We experienced another quarter of strong financial performance and we are very pleased with our results through the first nine months of the year."

During the third quarter, the Company acquired LaSalle Systems Leasing, Inc. and its affiliated company, LaSalle Equipment Limited Partnership ("LaSalle") based in the Chicago metropolitan area, for $39.7 million. Of this amount, $5.0 million was paid in the form of common stock, with the balance paid in cash. The purchase price, which includes a $4.0 million deferred payment tied to LaSalle's future results, generated approximately $1.7 million in goodwill. LaSalle operates as a subsidiary of MB Financial Bank.

RESULTS OF OPERATIONS

Third Quarter Results

The Company had net income of $12.2 million for the third quarter of 2002 compared to $7.7 million for the third quarter of 2001, an increase of $4.5 million or 58.0%. Net interest income, the largest component of net income, was $34.5 million for the three months ended September 30, 2002, an increase of $4.2 million or 14.0% from $30.3 million in the third quarter of 2001. Net interest income grew due to a 25 basis point increase in the net interest margin, expressed on a fully taxable equivalent basis, to 4.05%, and a $197.8 million increase in average interest earning assets. The increased net interest margin was primarily due to the reversal of interest rate compression experienced in 2001, at which time interest earning assets were repricing more quickly than interest bearing liabilities in a declining rate environment and better pricing obtained by the Company on loans and deposits in 2002. The increase in interest earning assets was primarily due to the First National Bank of Lincolnwood

("Lincolnwood") acquisition and continued growth of the loan portfolio.

The provision for loan losses increased by $1.5 million for the three months ended September 30, 2002 compared to the third quarter of 2001. The increase was primarily due to continued weakness in the overall economic environment and an increase of 6.5% in the loan portfolio over the past twelve months.

Other expense increased by $264 thousand, or 1.2% to $22.9 million for the three months ended September 30, 2002 from $22.6 million for the three months ended September 30, 2001. Salaries and employee benefits increased by $1.1 million due to the Lincolnwood and LaSalle acquisitions and the Company's continued growth and investment in personnel. Goodwill amortization expense declined by $683 thousand or $0.04 basic and fully diluted earnings per share, due to the adoption of Statement of Financial Accounting Standards No. 142 on January 1, 2002, which eliminated the requirement to amortize goodwill. Occupancy and equipment expenses declined by $239 thousand due to a decline in depreciation expense resulting from the outsourcing of data processing activities in December 2001.

Year-To-Date Results

The Company had net income of $34.1 million for the nine months ended September 30, 2002 compared to $22.6 million for the nine months ended September 30, 2001, an increase of $11.5 million or 51.0%. Fully diluted earnings per share for the nine months ended September 30, 2002 increased 50.8% to $1.90 compared to $1.26 for the same period in 2001. Net interest income, the largest component of net income, was $99.7 million for the nine months ended September 30, 2002, an increase of $15.8 million from $83.9 million for the first nine months of 2001. Net interest income grew due to a 44 basis point increase in the net interest margin, expressed on a fully taxable equivalent basis, to 4.08% and a $161.9 million increase in average earning assets. The increased net interest margin was primarily due to the reversal of interest rate compression experienced in 2001, at which time earning assets were repricing more quickly than interest bearing liabilities in a declining rate environment and better pricing obtained by the Company on loans and deposits in 2002. The increase in earning assets was primarily due to the Lincolnwood acquisition and continued growth of the loan portfolio.

The provision for loan losses increased by $6.6 million for the nine months ended September 30, 2002 compared to the same period in 2001. The increase was primarily due to continued weakness in the overall economic environment and an increase of 6.5% in the loan portfolio over the past twelve months.

Other expense increased by $1.6 million, or 2.4% to $66.7 million for the nine months ended September 30, 2002 compared to $65.1 million for the nine months ended September 30, 2001. Within the category, salaries and employee benefits increased by $2.4 million due to the Lincolnwood and LaSalle acquisitions and the Company's continued growth and investment in personnel. Other operating expenses increased by $2.2 million, primarily due to a $1.1 million accrual for a pending litigation matter (further discussed under "Other Expense" below) and a $1.1 million increase in computer services related to the outsourcing of processing activities and the addition of Lincolnwood. Goodwill amortization expense declined by $1.9 million or $0.11 basic and fully diluted earnings per share, due to the adoption of Statement of Financial Accounting Standards No. 142. Occupancy and equipment expenses declined by $1.1 million due to a $1.2 million decrease in depreciation expense resulting from the outsourcing of the data processing activities during December 2001 (MidCity Financial utilized an in-house data processing system prior to merger with Old MB Financial).

The Company's net interest income increased $15.8 million, or 18.8% to $99.7 million for the nine months ended September 30, 2002 from $83.9 million for the nine months ended September 30, 2001. Interest income decreased $16.7 million due to a 106 basis point decline in yield on average interest earning assets to 6.39%. The decrease in yield was partially offset by a $161.9 million, or 5.1% increase in average earning assets, comprised of a $227.2 million, or 10.4% increase in average loans, a $41.8 million, or 4.5% decline in average investment securities and an $18.1 million, or 45.2% decline in federal funds sold. Interest expense declined by $32.5 million due to a 175 basis point decrease in the cost of funds to 2.74%, which was partially offset by a $130.9 million, or 4.9% increase in average interest bearing liabilities. The net interest margin expressed on a fully taxable equivalent basis rose 44 basis points to 4.08% in the first nine months of 2002 from 3.64% in the comparable 2001 period due to the reversal of interest rate compression experienced in 2001 and better pricing obtained by the Company on loans and deposits in 2002.

OTHER INCOME

Other income increased $3.2 million, or 52.8% to $9.4 million for the quarter ended September 30, 2002 from $6.2 million for the third quarter of 2001. Net lease financing increased by $2.0 million due to $1.1 million in additional revenues generated as a result of the LaSalle acquisition and specific reserves totaling $600 thousand which the Company established against two lease schedules in the third quarter of 2001. Deposit service fees grew by $619 thousand primarily due to growth of monthly service charges and NSF and overdraft fees. Increase in cash surrender value of life insurance grew by $469 thousand as the insurance investment more than doubled due to an additional $35.0 million invested on January 2, 2002. Other operating income increased by $313 thousand, largely due to $295 thousand in gains on the origination and sale of residential mortgage loans in the 2002 period.

Other income increased $7.5 million, or 38.2% to $27.1 million for the nine-month period ended September 30, 2002 from $19.6 million for the first nine months of 2001. Net lease financing increased by $2.1 million due to $1.1 million in additional revenues generated as a result of the LaSalle acquisition and specific reserves totaling $600 thousand which the Company established against two lease schedules in the third quarter of 2001. Deposit service fees grew by $1.7 million primarily due to growth of monthly service charges and NSF and overdraft fees. Increase in cash surrender value of life insurance grew by $1.5 million due to the additional $35.0 million invested on January 2, 2002. Loan service fees increased $966 thousand, primarily due to a $779 thousand gain realized in the 2002 period in connection with the termination, through the clean up call, of the 96-1 home equity line of credit securitization trust. Trust and brokerage fees increased by $904 thousand due to increases in income from trust services and investment services income of $781 thousand and $92 thousand, respectively. Other operating income increased by $753 thousand, largely due to $501 thousand in gains on the origination and sale of residential mortgage loans in the 2002 period.

OTHER EXPENSE

Other expense increased by $264 thousand, or 1.2% to $22.9 million for the three months ended September 30, 2002 from $22.6 million for the three months ended September 30, 2001. Salaries and employee benefits increased by $1.1 million due to the Lincolnwood and LaSalle acquisitions and the Company's continued growth and investment in personnel. Goodwill amortization expense declined by $683 thousand as goodwill is not subject to amortization in the 2002 period under the provisions of Statement of Financial Accounting Standards No. 142, which the company adopted on January 1, 2002. Occupancy and equipment expenses declined by $239 thousand due to a decrease in depreciation expense resulting from the outsourcing of data processing activities in December 2001(MidCity Financial utilized an in-house data processing system prior to merger with Old MB Financial).

Other expense increased by $1.6 million, or 2.4% to $66.7 million for the nine months ended September 30, 2002 compared to $65.1 million for the nine months ended September 2001. Within the category, salaries and employee benefits increased by $2.4 million due to the Lincolnwood and LaSalle acquisitions and the Company's continued growth and investment in personnel. Other operating expenses increased by $2.2 million, primarily due to a $1.1 million accrual for an unfavorable appellate court ruling related to rent payments claimed to be owed by the Company pursuant to a land lease agreement under which the Company is lessee. During the first quarter of 2002, the appellate court reversed the decision of the lower court, which found that the Company was not liable for these payments under the lease agreement and directed summary judgement in favor of the plaintiff, the lessor. The Company is pursuing various legal options to seek reversal of the appellate court ruling. The accrual reflects the amount pertaining to rent expense incurred through the first nine months of 2002. A $1.1 million increase in computer services related to the outsourcing of processing activities and the addition of Lincolnwood also contributed to the rise in other operating expenses. Goodwill amortization expense declined by $1.9 million due to the Company's adoption of Statement of Financial Accounting Standards No. 142. Occupancy and equipment expenses declined by $1.1 million due to a $1.2 million decrease in depreciation expense resulting from the outsourcing of the data processing activities during December 2001.

INCOME TAXES

Income tax expense for the three months ended September 30, 2002 was $5.6 million compared to $4.3 million for the same period in 2001. The effective tax rate decreased to 31.4% for the third quarter of 2002 from 35.6% for the same period in 2001. The effective tax rate decreased primarily due to the favorable tax treatment of the income generated by the additional purchase of $35.0 million in cash surrender value of life insurance made during January of 2002 and the elimination of non-deductible goodwill amortization expense.

Income tax expense for the nine-month period ended September 30, 2002 was $15.5 million compared to $11.9 million for the same period in 2001. The effective tax rate decreased to 31.2% for the first nine months of 2002 from 34.6% for the same period in 2001. The effective tax rate decreased primarily due to the favorable tax treatment of the income generated by the additional purchase of $35.0 million in cash surrender value of life insurance made during January of 2002 and the elimination of non-deductible goodwill amortization expense.

BALANCE SHEET

Total assets increased $354.1 million or 10.2% to $3.8 billion at September 30, 2002 compared to $3.5 billion at December 31, 2001. Investment securities available for sale increased by $159.6 million, or 18.9%, primarily due to the acquisition of Lincolnwood, which had investment securities available for sale of $111.7 million at the April 8, 2002 acquisition date. Net loans increased by $145.8 million or 6.4%, largely due to Lincolnwood, which had net loans of $101.4 million at the acquisition date. Cash surrender value of life insurance increased by $38.1 million, or 112.4% primarily due to an additional investment of $35.0 million made in January 2002. Net lease investments increased by $18.7 million, or 38.7% due to the LaSalle acquisition, while goodwill increased by $13.8 million due to goodwill generated in the Lincolnwood and LaSalle acquisitions.

Total liabilities increased by $312.0 million, or 9.8% to $3.5 billion at September 30, 2002 from $3.2 billion at December 31, 2001. Total deposits grew by $279.9 million, or 9.9%, largely due to $182.8 million in deposits acquired from Lincolnwood. Long-term borrowings increased by $73.0 million, or 123.8% due to the issuance of $59.8 million in trust-preferred securities in August 2002 and the assumption of a $10.3 million note payable in the LaSalle transaction. Short-term borrowings declined by $37.1 million, or 15.2% due to $83.0 million in repayments of Federal Home Loan Bank advances, which were partially offset by additional federal funds purchased of $46.4 million.

Total stockholders' equity increased $42.2 million, or 14.4% to $335.8 million at September 30, 2002 compared to $293.6 million at December 31, 2001. The growth was primarily due to continued strong earnings, a $9.9 million increase in accumulated other comprehensive income, and the issuance of $5.0 million in additional common stock in conjunction with the acquisition of LaSalle. The above were partially offset by $7.9 million, or $0.45 per share cash dividends paid.

At September 30, 2002, the Company's total risk-based capital ratio was 14.64%, Tier 1 capital to risk-weighted assets ratio was 12.72% and Tier 1 capital to average asset ratio was 9.52%. The Banks were each categorized as "Well-Capitalized" under Federal Deposit Insurance Corporation regulations at September 30, 2002.

CONTACT:

MB Financial, Inc.

Jill York, 773/645-7866

jyork@mbfinancial.com

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